Which of the Following Is True in the Long Run

question 132

Multiple Choice

Which of the following is true in the long run?

• A)The aggregate demand curve determines the level of potential output.
• B)The long-run aggregate supply curve is horizontal.
• C)The actual price level is less than the expected price level.
• D)Cyclical unemployment is between 5 percent and 6 percent.
• E)The price level is determined entirely by the aggregate demand curve.

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Definitions:

Compulsions

Repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession, typically aimed at reducing anxiety or preventing a feared event or situation.

Recurrent Thoughts

Repeated thoughts or ideas that frequently occupy a person's mind.

Recurrent Behaviors

Repetitive actions often performed with little conscious thought, which can be part of routines, habits, or compulsions.

Social Phobia

A severe anxiety disorder characterized by a significant amount of fear in one or more social situations, causing considerable distress and impaired ability to function in at least some parts of daily life.